Arista Networks (NYSE: ANET) and UTStarcom Holdings Corp (NASDAQ:UTSI) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Risk & Volatility
Arista Networks has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, UTStarcom Holdings Corp has a beta of -0.3, suggesting that its stock price is 130% less volatile than the S&P 500.
Earnings & Valuation
This table compares Arista Networks and UTStarcom Holdings Corp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Arista Networks||$1.36 billion||10.29||$350.69 million||$3.85||50.11|
|UTStarcom Holdings Corp||$80.18 million||1.15||$535,000.00||$0.02||130.07|
Arista Networks has higher revenue and earnings than UTStarcom Holdings Corp. Arista Networks is trading at a lower price-to-earnings ratio than UTStarcom Holdings Corp, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
59.3% of Arista Networks shares are held by institutional investors. Comparatively, 25.9% of UTStarcom Holdings Corp shares are held by institutional investors. 28.1% of Arista Networks shares are held by company insiders. Comparatively, 2.7% of UTStarcom Holdings Corp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Arista Networks and UTStarcom Holdings Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|UTStarcom Holdings Corp||N/A||N/A||N/A|
This is a breakdown of recent recommendations and price targets for Arista Networks and UTStarcom Holdings Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|UTStarcom Holdings Corp||0||0||0||0||N/A|
Arista Networks presently has a consensus target price of $167.22, indicating a potential downside of 13.32%. Given Arista Networks’ higher probable upside, research analysts plainly believe Arista Networks is more favorable than UTStarcom Holdings Corp.
Arista Networks beats UTStarcom Holdings Corp on 12 of the 13 factors compared between the two stocks.
About Arista Networks
Arista Networks, Inc. is a supplier of cloud networking solutions that use software innovations to address the needs of Internet companies, cloud service providers and data centers for enterprise support. It develops, markets and sells cloud networking solutions, which consist of its Gigabit Ethernet switches and related software. The Company’s cloud networking solutions consist of its Extensible Operating System (EOS), a set of network applications and its Ethernet switching and routing platforms. The programmability of EOS has allowed it to create a set of software applications that address the requirements of cloud networking, including workflow automation, network visibility and analytics, and has also allowed it to integrate with a range of third-party applications for virtualization, management, automation, orchestration and network services. EOS supports cloud and virtualization solutions, including VMware NSX, Microsoft System Center and other cloud management frameworks.
About UTStarcom Holdings Corp
UTStarcom Holdings Corp. provides broadband products, solution and services. The Company delivers broadband transport and access (both wireless fidelity (Wi-Fi) and fixed line) products and solutions, optimized for mobile backhaul, metro aggregation, broadband access and Wi-Fi data offloading. Its segments include Equipment, which is focused on its equipment sales, including network infrastructure and application products, and Services, which is engaged in providing services and support of its equipment products and also the new operational support segment. The broadband product lines include family of packet transport network (PTN) products based on multi-protocol label switch transport profile (MPLS-TP) and carrier Ethernet (CE) technologies enhanced through in-house software-defined networking (SDN) platform to support the network evolution, and multi services access network (MSAN) platform. Wireless broadband access is represented by end-to-end Carrier Wi-Fi solution.
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